Mortgage rates drop for 3rd consecutive week on expectations of Fed rate cut

Mortgage rates fell for the third straight week on market expectations of future Fed rate cuts, according to a Freddie Mac primary mortgage survey.

30-year fixed-rate mortgages averaged 6.87% as of June 20, compared to 6.95% last week and 6.67% compared to last week.

15-year fixed-rate mortgages averaged 6.13%, down from 6.17% a week ago and up from 6.03% a year ago.

Sam Khater, chief economist at Freddie Mac, said: “Mortgage rates fell for the third week in a row following indications of slowing inflation and market expectations of a future Fed interest rate cut.”

Khater added: “The decline in mortgage rates coupled with the gradual improvement in housing supply bodes well for the housing market.”